The onset of the Covid-19 pandemic has hurt the economy and the livelihoods of many. And despite the arrival of the vaccine on the scene, the pandemic shows no signs of receding. With new variants of the virus cropping up, we are witnessing a situation that is even getting worse. In such an era of uncertainty, India’s Direct Selling industry plays a positive role by providing livelihoods to millions of people. The Direct Selling industry is indeed reinventing itself as it strives to maintain a balance between human interactions and online sales in its effort to overcome the ongoing crisis. The pandemic seems to be proving as a catalyst for a smooth transition of Direct Selling from offline to a more online one in the future. Let us find out then why it is envisioned as the future of retail.
Increase in Online Transactions
Ever since the lockdowns induced by the pandemic came into effect, there has been a visible shift to online ordering by consumers. As per the report on the news website – The Hindu, the transition has been so significant that it shot up from around 30 percent in February 2020 to more than 90 percent. This trend has encouraged the Direct Selling industry to leverage the combined benefits of technology and the internet. So now, we see the e-commerce companies continuously on a mission to build and strengthen their digital capabilities. So far, the Direct Selling industry has been majorly focused on human networking. But now, they are all set to reinvent new ways for human interactions.
Direct Selling – Bypassing Intermediaries
As we move ahead with our discussion, it is imperative to have a word about retail sales. Retails Sales involve selling goods to consumers via different channels of distribution with the sole goal of earning profits. But unlike Retail Sales, where physical stores and a chain of distributors are involved, Direct Selling avoids them. Instead, in Direct Selling, the product is sold by the company’s sales representative directly to the consumer. Since no middlemen are involved, it enables Direct Selling companies in saving big.
Furthermore, as the products directly reach the end-user from the manufacturer, the effective product price to consumer works out economical. So that is a win-win situation for the company as well as the consumer. And not forgetting the Independent Sales Representative who earns big via commission and earns by introducing further recruiting agents for the company and the commission on the sales the agents make!
In Turbulent Times – Direct Selling Remains Steady
Despite the adverse pandemic conditions, the economic slowdown and the unemployment crisis, the Direct Selling or the Network Marketing industry have remained stable and even shot into prominence. Going ahead, the advancement in technology will provide sales channels that will include virtual reality and delivering orders via drones. In addition, customers are likely to shift focus from offline to online transactions that provide a personalized experience. All this augurs well for the e-commerce companies and the Direct Selling industry as a whole.
Though there is cut-throat competition among e-commerce giants, the stability in the Direct Selling or the Multilevel Marketing sector seems to be positive as there is scope for further growth. As per the DSA-Ipsos 2020 Consumer Attitudes & Entrepreneurship Study, a feel-good factor remains towards the Direct Selling companies due to the personalized service. Furthermore, within the Direct Selling companies, the health and wellness categories experienced the maximum growth.
Direct Selling – Looking Ahead to a Rosy Future
India is one of the top two populous countries, with one-fifth of the world’s youth population. The Direct Selling Industry has been people-centric and able to quench the youth’s growing appetite for financial independence and create livelihoods for the needy during the pandemic crisis. The Multilevel Marketing business that eliminates intermediaries and wholesale retailers are practiced in more than a hundred countries providing employment opportunities and means to become independent. In addition, the Direct Selling industry has led to increased referral marketing, making Network Marketing or Multilevel Marketing even more relevant. The Direct Selling business is a win-win proposition for the Company, its Independent Representative, and the Consumer. Partnering with a Direct Selling company as an Independent Representative can enable you to build your own business and be your own boss too. Direct Selling is here to stay and indeed the future of retail.
